Boeing Awarded $18.3M for Small Diameter Bomb Modification, Lacking Competition
Contract Overview
Contract Amount: $18,286,605 ($18.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-02-04
End Date: 2024-01-03
Contract Duration: 1,794 days
Daily Burn Rate: $10.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SMALL DIAMETER BOMB I BRU-61/A MODIFICATION EFFORT - DUAL POWER
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $18.3 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB I BRU-61/A MODIFICATION EFFORT - DUAL POWER Key points: 1. Significant contract value for a specialized defense component. 2. Sole-source award raises questions about price discovery and potential overpayment. 3. Long contract duration (1794 days) warrants close monitoring. 4. Focus on ammunition manufacturing highlights a critical defense sector.
Value Assessment
Rating: questionable
The contract value of $18.3 million for modifications to the BRU-61/A is difficult to benchmark without specific details on the modifications. The lack of competition suggests potential for inflated pricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The absence of competition in this sole-source award could lead to taxpayers paying more than necessary for the modifications.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The modification of essential munitions impacts national defense capabilities. Oversight is crucial to ensure the modifications are necessary and cost-effective.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential defense procurement
- Firm fixed price contract
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is critical for national security, but often involves complex, specialized components where competition can be challenging.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). Further analysis would be needed to determine if small businesses could have competed for this modification work.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency (DCMA), suggesting a level of oversight. However, the sole-source nature necessitates robust monitoring to ensure fair pricing and effective execution.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Potential for overpayment due to sole-source award.
- Limited transparency on modification details.
- Long contract duration increases risk of cost overruns or scope creep.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to THE BOEING COMPANY. SMALL DIAMETER BOMB I BRU-61/A MODIFICATION EFFORT - DUAL POWER
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $18.3 million.
What is the period of performance?
Start: 2019-02-04. End: 2024-01-03.
What specific modifications are being made to the BRU-61/A, and what is the justification for these changes?
The specific modifications are not detailed in the provided data. Understanding the technical scope and necessity of these changes is crucial for assessing their value. Without this information, it's difficult to determine if the $18.3 million expenditure is justified or if it represents an overpayment for minor upgrades.
What efforts were made to explore competitive options before awarding this contract as sole-source?
The data explicitly states the contract was 'NOT COMPETED'. This implies no competitive bidding process was undertaken. Agencies are typically required to justify sole-source awards, often citing unique capabilities or urgent needs. Further investigation into the justification for bypassing competition is warranted.
How does the unit cost of the BRU-61/A modification compare to similar munitions or previous modifications, if available?
A direct per-unit cost comparison is not possible with the provided data. The total award is $18.3 million over 1794 days. Without knowing the number of units modified or the specific nature of the modifications, benchmarking against similar contracts or historical data is challenging, especially given the sole-source nature.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,286,605
Exercised Options: $18,286,605
Current Obligation: $18,286,605
Actual Outlays: $779,000
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $15,447,467
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA867214D0007
IDV Type: IDC
Timeline
Start Date: 2019-02-04
Current End Date: 2024-01-03
Potential End Date: 2024-01-03 00:00:00
Last Modified: 2025-09-22
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